CM 2113 TEST 1 - CHAO WANG | QUESTIONS AND ANSWERS | 2026
UPDATE | 100% CORRECT - LOUISIANA STATE UNIVERSITY AND
AGRICULTURAL & MECHANICAL COLLEGE.
100% Correct 47
Incorrect 0
1 of 47
Term
The contractor purchased the tractor for $220,000 and anticipates a
salvage value of $25,000 after 5 years of use. What is the annual
depreciation amount in the 2nd year if the double declining-balance
method of depreciation accounting is used?
Select one:
a. $52,800
b. $19,008
c. $88,000
d. $31,680
Give this one a try later!
a. $39,000 d. $18,420
, a. $52,800 a. $132,000
Don't know?
2 of 47
Term
How much is the contractor’s hourly depreciation portion of
ownership cost for the loader if using the Average Annual
Investment Method (see textbook page 44 Example 2.9 for
reference)?
Select one:
a. $3.26/hr
b. $6.01/hr
c. $2.75/hr
d. $7.85/hr
Give this one a try later!
b. $6.01/hr a. $1.93/hr
b. $0.81/hr a. $1.56/hr
Don't know?
3 of 47
,Term
Comparing a future cost of one alternative with the present worth
cost of a second alternative is valid and meaningful.
Select one:
True
False
Give this one a try later!
False True
c. 7.606 c. Increase
Don't know?
4 of 47
Term
How much is the hourly tire repair cost if it is estimated that the tire
repair is 25% of the tire depreciation and the life of the tires is
4,000 hours. (See textbook page 48 Example 2.14 for reference)
Select one:
a. $1.56/hr
b. $6.25/hr
c. $0.10/hr
d. $0.25/hr
Give this one a try later!
, b. $6.01/hr a. $1.56/hr
b. $1.68/hr c. $9.00/hr
Don't know?
5 of 47
Term
Equipment service is a/an________.
Select one:
a.Ownership Cost
b. Operating Cost
Give this one a try later!
b. Ownership Cost a. Ownership Cost
b. Operating Cost c. Salvage value
Don't know?
UPDATE | 100% CORRECT - LOUISIANA STATE UNIVERSITY AND
AGRICULTURAL & MECHANICAL COLLEGE.
100% Correct 47
Incorrect 0
1 of 47
Term
The contractor purchased the tractor for $220,000 and anticipates a
salvage value of $25,000 after 5 years of use. What is the annual
depreciation amount in the 2nd year if the double declining-balance
method of depreciation accounting is used?
Select one:
a. $52,800
b. $19,008
c. $88,000
d. $31,680
Give this one a try later!
a. $39,000 d. $18,420
, a. $52,800 a. $132,000
Don't know?
2 of 47
Term
How much is the contractor’s hourly depreciation portion of
ownership cost for the loader if using the Average Annual
Investment Method (see textbook page 44 Example 2.9 for
reference)?
Select one:
a. $3.26/hr
b. $6.01/hr
c. $2.75/hr
d. $7.85/hr
Give this one a try later!
b. $6.01/hr a. $1.93/hr
b. $0.81/hr a. $1.56/hr
Don't know?
3 of 47
,Term
Comparing a future cost of one alternative with the present worth
cost of a second alternative is valid and meaningful.
Select one:
True
False
Give this one a try later!
False True
c. 7.606 c. Increase
Don't know?
4 of 47
Term
How much is the hourly tire repair cost if it is estimated that the tire
repair is 25% of the tire depreciation and the life of the tires is
4,000 hours. (See textbook page 48 Example 2.14 for reference)
Select one:
a. $1.56/hr
b. $6.25/hr
c. $0.10/hr
d. $0.25/hr
Give this one a try later!
, b. $6.01/hr a. $1.56/hr
b. $1.68/hr c. $9.00/hr
Don't know?
5 of 47
Term
Equipment service is a/an________.
Select one:
a.Ownership Cost
b. Operating Cost
Give this one a try later!
b. Ownership Cost a. Ownership Cost
b. Operating Cost c. Salvage value
Don't know?
